VDER Resources

In support of Reforming the Energy Vision, the New York State Public Service Commission established a mechanism to transition to a new way to compensate distributed energy resources (DER), like solar power. This mechanism, called the Value of Distributed Energy Resources (VDER), replaces net energy metering (net metering or NEM).

VDER compensates projects based on when and where they provide electricity to the grid. To determine a project's revenue under VDER, use the Solar Value Stack Calculator. The calculator combines the wholesale price of energy with the distinct elements of DER that benefit the grid: the avoided carbon emissions, the cost savings to customers and utilities, and other savings from avoiding expensive capital investments.

PV developers and other stakeholders can comment on these proposed changes on the DPS VDER website.

Solar Value Stack Calculator

Use our Solar Value Stack Calculator to estimate compensation for your solar projects. The Calculator was updated to Revision 1.9 on 11/15/2018.

VDER on Long Island

The Long Island Power Authority (LIPA) has recently approved a version of VDER for customers of PSEG-Long Island. LIPA’s tariff document has been updated, and contains the details. Please visit PSEG’s VDER website for more details and Long Island–specific resources. The Solar Value Stack Calculator has been revised to include projects in PSEG-Long Island’s service territory.

Long Island’s VDER Order is largely similar to the rest of the State’s VDER program. The most important differences are:

Mass market (residential, and non-demand commercial) off-takers of Community Distributed Generation (CDG) projects will receive volumetric crediting rather than monetary crediting through the value stack

Projects receiving ICAP Alternative 3 will have their compensation based on grid injections over the top 10 hours of annual peak utility demand, rather than the single top hour.

VDER Frequently Asked Questions

We’ve compiled answers to some of the most common questions on VDER below, but if you have others, email us at vder@nyserda.ny.gov.

Utility VDER Updates

Each utility files a monthly statement that includes actual monthly ICAP rates, current Demand Reduction Value (DRV) rate, and current Locational System Relief Value (LSRV) capacity remaining per substation. All available historic monthly statements are available through the links below. Distributed Energy Resources (DER) developers can review these for the most recent value stack data.

LSRV Zone Maps

Each utility has identified areas where it offers additional elements to the value stack, resulting in higher project compensation. The LSRV maps below delineate these territories and are broken out by utility. The LSRV zones, capacity caps, and values were approved by the Public Service Commission in the 9/14/2017 VDER Implementation Order.

NY-Sun

NY-Sun, a dynamic public-private partnership, will drive growth in the solar industry and make solar technology more affordable for all New Yorkers. NY-Sun brings together and expands existing programs administered by NYSERDA, Long Island Power Authority (LIPA), PSEG Long Island, and the New York Power Authority (NYPA), to ensure a coordinated, well-supported solar energy expansion plan and a transition to a sustainable, self-sufficient solar industry.